Vanda signs licensing agreement with Novartis for schizophrenia drug

Vanda Pharmaceuticals, a biopharmaceutical company, has entered into an agreement with Novartis Pharma to commercialize and develop Fanapt, Vanda's anti-psychotic, in the US and Canada.

Under the terms of the agreement, which amended and restated a prior agreement among the parties, Novartis will have exclusive commercialization rights to Fanapt for the US and Canada. Novartis will be responsible for the further clinical development activities in these territories, including the development and commercialization of a long-acting injectable formulation of Fanapt.

Vanda will retain rights to commercialize Fanapt oral and depot formulations outside the US and Canada. At Novartis's option, the parties will enter into good faith discussions relating to an agreement for the co-commercialization of Fanapt outside of the US and Canada or, alternatively, Novartis will receive a royalty on net sales.

Under the agreement, Vanda will receive an upfront payment of $200 million and will be eligible for additional payments totaling up to $265 million upon the achievement of certain development and commercial milestones for Fanapt in the US and Canada.

Vanda will also receive royalties on the US and Canadian net sales of Fanapt. The consummation of the transaction is subject to the receipt of customary regulatory approvals, which are expected by the end of 2009.

Fanapt was approved by the FDA on May 6, 2009 for the acute treatment of schizophrenia in adults. Fanapt is a mixed dopamine D2/serotonin 5HT2A receptor antagonist.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon

Related terms: canada, clinical, commercial